Farmers' Loan & Trust Co. v. Bankers & Merchants' Telegraph Co.
New York Court of Appeals
Appeal from order of the General Term of the Supreme Court in the first judicial department, made January 18, 1895, which affirmed an order of the Special Term confirming the report of a referee and adjudging the claim of the appellant, the Third National Bank, not to be a preferred claim. against the property of the Bankers and Merchants’ Telegraph Company, respondent.
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Appeal from order of the General Term of the Supreme Court in the first judicial department, made January 18, 1895, which affirmed an order of the Special Term confirming the report of a referee and adjudging the claim of the appellant, the Third National Bank, not to be a preferred claim. against the property of the Bankers and Merchants’ Telegraph Company, respondent. The Third National Bank of the city of New York in May, 1884, upon the application of the officers of the Bankers and Merchants’ Telegraph Company, a New York corporation owning and operating lines of telegraph in New York,…
1Opinion of the Court
Andrews, Ch. J.
It is claimed in behalf of the Third FTational Bank that the money loaned to the Bankers and Merchants’ Telegraph Company created a debt which, in equity, was entitled to rank as a charge on the proceeds of the foreclosure sale prior to the claim of the bondholders. It is undisputed that the mortgage to secure the bonds was executed ¡November 23,1883, and that the loan by the bank was not made until the following May. By the general rule the bond1holders who relied upon the mortgage as security for their debts, which was a specific charge upon the property of the Bankers and…
2Cases cited1 opinion
- Penn v. CalhounSupreme Court of the United States · 1887
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